From Financial Crisis to Financial Confidence

Lessons from the storms

This past year has been full of challenges and unforeseen circumstances. You’ve had to adapt in so many ways. You’ve also learned more about yourself, your family and friends. My encouragement to you today is to not let this experience go to waste. Don’t slip back into routines and complacency that keeps you from living your best life. Hold on tightly to your hopes, dreams and aspirations.

Take decisive action

It can be difficult to truly process an experience while in the midst of it. As the months have passed and a new calendar year has begun, now is a good time to take a look in the rear view mirror. Reflect on the events of the past year, how they impacted your life and what could have helped you better prepare for it. Use that information to be proactive going forward. Take time to create an action plan to guide you.

Here’s are six steps to create an action plan to go from a place of crisis to a place of confidence:

Acknowledge – Be brutally honest with yourself. No excuses, just facts. Write down all of your financial accounts, assets and liabilities (debts). Include as much information about each one, such as terms, purpose and value. List any negative activities you are working to recover from, such as late payments, collection items or bankruptcy. Put it all out there.

Clarify – Be clear about the people, activities and experiences that you want in your life. Write down the words that represent your best life – when you will be at your best and being fulfilled. Create a vision board or vision statement to help you stay the course. Identify the obstacles that need to be overcome in order for you to reach your goals. Write down how you will navigate each one. Reach out to your network for support and referrals. Be as specific and detailed as possible.

Track – Record everything relentlessly. The only way you will be able to measure progress and make improvements is by tracking what matters. Measure your progress against benchmarks or pre-determined stages. Use whatever tool works best for you – planner, notebook, app or calendar.

Incentivize – Reward yourself for hitting each benchmark. It’s important to take time to celebrate your consistency and commitment. Share your goals and progress with others. It can be challenging to see how far you’ve come when you’re in the thick of it. We all need motivation along the way. Celebrating small successes can be a big motivator.

Own Your Outcomes – Only you are responsible for the outcome. You are the driver. There will be detours and more unforeseen obstacles ahead. That is a given. The actions you take today to be better prepared will make a significant difference in your journey. Learn from each experience.

Next Steps – It’s important to remain flexible and open to change. There are many different paths that lead to a destination. Look for ways to experience joy and gratitude for your unique circumstances. The things you have been through are what have helped shape the person you are today.

Take time for a financial checkup

Personal finances can be confusing and overwhelming. That’s why we are committed to coaching people just like you every day. We want to share the metrics that matter so you can craft a roadmap that works best for you and your goals.

Check out Financial Wellness 101 – The Ultimate Financial Handbook for Young Professionals. We also offer 1:1 Financial Coaching to help you create a clear roadmap to improve financial wellness.

Run your numbers at least once a quarter and make sure to follow our blog to help you stay on the right track! Wishing you financial wellness throughout 2021 and beyond. Cheers!